Chase Corporation Investor Relations

Chase Corporation’s Chief Financial Officer, Kenneth L. Dumas then commented as follows:

Thank you Peter. It’s certainly a different world out there. Although we, like most companies have many challenges ahead, I’m happy to say that we’re financially stable and have a strong balance sheet as we manage through these difficult economic times.

We are well positioned to weather the storm

We have minimal bank debt and cash flows have been positive throughout fiscal year 2009

We remain focused on managing our risks and exposures which have increased for everyone due to the recession, while our enhanced awareness geared towards assessing our inventory balances and collection efforts should serve us well

This includes the establishment of a “receivables watch list” that we are utilizing to track customers who have larger balances, aged balances or have a short credit history with us.

Our goal is to stay on top of and hopefully ahead of any potential collection issues.

We continue to have good banking and insurance relationships, especially with Bank of America and Citizens Bank, both of whom are here today.

With their continued support we remain focused on our strategy to grow our business through acquisitions.

Our M&A program has never been more important and is a priority for the senior management team and our Board of Directors.

It’s also important to note that the sharp decrease in the value of the pound sterling has had a negative impact on reported results from our UK operations as we’ve seen a 24% decline in its value against the dollar in the first five months of our fiscal year.

In reflecting on Fiscal Year 2008 for a moment, I’d like to point out that we successfully completed our second straight year of complying with the internal control requirements of the Sarbanes-Oxley Act.

Our internal controls have never been better. As we grow they will continue to be an important part of how we do business and we will always look for continuous improvement in this area.

Everyone within our organization has played a role in ensuring proper internal controls remains a priority. I’d especially like to thank John Brenton, our Corporate Controller, who has been an integral part of our SOX project team from the time he joined Chase Corporation a year and half ago.

Complying with SOX remains an expensive proposition, especially for a company our size, but I’m happy to say that we were able to reduce our compliance costs in year 2 and plan to reduce them yet again this year.

Thank you.

Chairman Chase continued:

Our base businesses are in traditionally stalwart segments of the economy. Tapes and sealants used in wire and cable designs support electrical power distribution, oil exploration, electronic data and voice transmission, new housing, wind farms and solar generated electricity.

Electronic coatings are an integral component of circuitry used in automobiles, appliances, industrial controls, avionics and countless high reliability applications for defense, industrial and consumer products.

Our corrosion prevention products protect worldwide oil and gas pipelines, water and waste water pipes and containment structures, cooling systems and many local utility maintenance applications.

Our water and moisture protection tapes, membranes, asphalt additives and sealants are used in many industrial, roofing repair and replacement systems, provide protection for bridge and parking structure decks and provide a below grade moisture barrier for industrial and high value residential construction.

Our line of fabricated foam products are used for expansion joint cushioning and water protection in bridge and deck applications.

Specialty film and foil laminations are used in aircraft as part of the thermal and acoustic insulation. The same manufacturing plant produces a range of food packaging products.

Our PaperTyger tear resistant paper laminates are used in the envelope and printing industries.

You can see that we are strategically positioned in a variety of markets. As these recover and return to historic levels we will rise with the tide. We don’t expect this to be soon but will benefit when it does.

In addition we have a number of new product initiatives.

PaperTyger Green is a biodegradable version of our standard product.

We have revitalized an existing service, casing fill, (a repair process for natural gas transmission and distribution lines) through a joint marketing effort with an international engineering firm.

An expanded product line for protecting above ground gas applications such as meters is now being introduced.

An existing product has been modified for a new application – Pot Hole Fix.

Our foam product line has been expanded to supply a growing architectural application.

In development is the customization of our solventless UV curable conformal coating range of products, lower cost versions of several established products and a project to reduce the operating temperature of our asphalt additive Rosphalt 50.

Adam Chase will speak a bit more about these new opportunities as well as make some comments on current operating plans and activities.

President and Chief Operating Office, Adam Chase then reviewed 2008 plus current challenges and opportunities.

Peter, I want to thank you and the board for your continued support and take this opportunity to thank our shareholders, stakeholders and most importantly, our employees for their support and contributions to Chase Corporation.

I especially want to recognize and thank my team of direct reports who work very hard every day to achieve solid results. I am very proud to work with such a talented team of people.

Peter raised some critical issues for Chase Corporation as we continue into this fiscal year. I will quickly address fiscal 2008, which is now a distant memory given the global financial crisis and weakening economic conditions.

FY 2008

During Fiscal 2008 we had solid results in core markets despite volatility in raw materials pricing and availability.

Demand remained strong for many core product lines:

Pipeline

Electronic coatings

Wire & Cable – In particular our Chase Blh₂ock™ strand fill compound traditionally used for water blocking in 35 KV URD cable gained wide acceptance in wind farm energy distribution applications.

At last year’s meeting I discussed the challenges facing our company due to higher than normal pricing pressure on raw materials.

During Fiscal 2008, we experienced an unprecedented increase in the price of oil, which resulted in extreme pricing and supply volatility for many key raw materials.

We were able to successfully face these challenges, we maintained margins and more importantly we maintained continuity of supply to our customers.

FY 2009

The first signs of the global financial crisis appeared at the very beginning of Fiscal 2009.

Crude oil began to drop sharply and subsequently many basic commodities have begun to fall and customers are looking for price reductions. Our products are not basic commodities and not all inputs have decreased in price as quickly as crude oil. We are addressing each situation appropriately.

We will continue making progress on our consolidation and restructuring efforts. These initiatives have become more strategically important given the current economic climate.

This spring, we plan to install an improved Humiseal manufacturing control system at our Zeta Drive facility in Pittsburgh. Our re-investment in this core product line will help us to enhance our participation in Humiseal’s value chain.

We also continue to invest in product and market development. Some examples are as follows:

Paper Tyger Green – This is a Patent pending product enhancement of our traditional Paper Tyger product, but with an oxo-biodegradable inner strength member.

Royfill Casing Filler – Our partnership with Mears Group is revitalizing sales of this 25 year old product.

Further, we developed a complementary Casing End Seal utilizing several of Chase’s corrosion prevention product technologies.

Pipeline Wax tapes – These are used for above ground corrosion prevention applications in the gas industry. This fills a gap in our product portfolio.

Architectural foam – This is an extension of our expansion joint product line used primarily in roads and bridges.

Pot Hole Fix – We are developing new commercial and retail applications for an existing product technology primarily used in roads and bridges as well.

Products under development:

Low Smoke/Low Temperature R50 – Enhancement to an existing product.

Humiseal UV40 – Application specific formulations being developed.

Despite the current state of the economy, we continue to move ahead with strategic initiatives that will benefit us in the long term. We are well positioned financially and are prepared for the challenges ahead.

Thank you again for your support.

Peter Chase concluded:

The main leg of our growth engine has never been more active. We have multiple acquisition opportunities with the financial resources available to do the transactions. In the current climate we are looking more carefully and setting a higher standard. Nevertheless, we have several outstanding candidates.

As you know we have grown over the years through a combination of organic growth and acquisition expansion. This is of course blended with our own style of careful fiscal management and control, continuous improvement in operations and global expansion.

In conclusion, with our strong balance sheet, strategic position in key markets, new product and service offerings and our M&A opportunities we are positioned well to weather the recession while building new business from both internal developments and acquisitions.

From all indications and predictions a recovery may not occur until well into year 2010.

We will rely on our proven management style to both run a tight ship and take advantage of the internal and external strategic opportunities to build value.

We have a great team, an established track record and a winning strategy for the tough time ahead.









					Following is the address given by Chase Corporation’s Chairman & CEO, Peter Chase at the 2009 Annual Meeting of Shareholders: ANNUAL SHAREHOLDER MEETING – JANUARY 30, 2009 Welcome to the new world economy – what’s left of it. We’ve had quite a battle the last couple of months with both the business and the weather and in our own case the weather can affect the business. It is often said that timing is everything. I guess that is the reason that Chase Corporation’s best year ever got little notice and went unrewarded. The collapse of the market in October, November and December wiped out some very impressive results. In addition to the record revenues and income our balance sheet was debt free at fiscal year end and at its strongest in history. Today after nearly four months of FY 2009, our bank debt is less than $1 million even after paying annual bonuses, federal and state tax payments and a shareholder dividend of alone nearly $3 million. I can’t stress this enough because it provides a platform to move forward. We are also very secure in the quality of our assets. We utilize a rigorous and thorough inventory valuation process monthly and our cost system readjusts standards quarterly. Accounts receivable are monitored weekly and more recently we have stepped up efforts to anticipate potential customer problems. Ken Dumas will now comment on this area.








					Chase Corporation’s Chief Financial Officer, Kenneth L. Dumas then commented as follows: Thank you Peter. It’s certainly a different world out there. Although we, like most companies have many challenges ahead, I’m happy to say that we’re financially stable and have a strong balance sheet as we manage through these difficult economic times. We are well positioned to weather the storm We have minimal bank debt and cash flows have been positive throughout fiscal year 2009 We remain focused on managing our risks and exposures which have increased for everyone due to the recession, while our enhanced awareness geared towards assessing our inventory balances and collection efforts should serve us well This includes the establishment of a “receivables watch list” that we are utilizing to track customers who have larger balances, aged balances or have a short credit history with us. Our goal is to stay on top of and hopefully ahead of any potential collection issues. We continue to have good banking and insurance relationships, especially with Bank of America and Citizens Bank, both of whom are here today. With their continued support we remain focused on our strategy to grow our business through acquisitions. Our M&A program has never been more important and is a priority for the senior management team and our Board of Directors. It’s also important to note that the sharp decrease in the value of the pound sterling has had a negative impact on reported results from our UK operations as we’ve seen a 24% decline in its value against the dollar in the first five months of our fiscal year. In reflecting on Fiscal Year 2008 for a moment, I’d like to point out that we successfully completed our second straight year of complying with the internal control requirements of the Sarbanes-Oxley Act. Our internal controls have never been better. As we grow they will continue to be an important part of how we do business and we will always look for continuous improvement in this area. Everyone within our organization has played a role in ensuring proper internal controls remains a priority. I’d especially like to thank John Brenton, our Corporate Controller, who has been an integral part of our SOX project team from the time he joined Chase Corporation a year and half ago. Complying with SOX remains an expensive proposition, especially for a company our size, but I’m happy to say that we were able to reduce our compliance costs in year 2 and plan to reduce them yet again this year. Thank you. Chairman Chase continued: Our base businesses are in traditionally stalwart segments of the economy. Tapes and sealants used in wire and cable designs support electrical power distribution, oil exploration, electronic data and voice transmission, new housing, wind farms and solar generated electricity. Electronic coatings are an integral component of circuitry used in automobiles, appliances, industrial controls, avionics and countless high reliability applications for defense, industrial and consumer products. Our corrosion prevention products protect worldwide oil and gas pipelines, water and waste water pipes and containment structures, cooling systems and many local utility maintenance applications. Our water and moisture protection tapes, membranes, asphalt additives and sealants are used in many industrial, roofing repair and replacement systems, provide protection for bridge and parking structure decks and provide a below grade moisture barrier for industrial and high value residential construction. Our line of fabricated foam products are used for expansion joint cushioning and water protection in bridge and deck applications. Specialty film and foil laminations are used in aircraft as part of the thermal and acoustic insulation. The same manufacturing plant produces a range of food packaging products. Our PaperTyger tear resistant paper laminates are used in the envelope and printing industries. You can see that we are strategically positioned in a variety of markets. As these recover and return to historic levels we will rise with the tide. We don’t expect this to be soon but will benefit when it does. In addition we have a number of new product initiatives. PaperTyger Green is a biodegradable version of our standard product. We have revitalized an existing service, casing fill, (a repair process for natural gas transmission and distribution lines) through a joint marketing effort with an international engineering firm. An expanded product line for protecting above ground gas applications such as meters is now being introduced. An existing product has been modified for a new application – Pot Hole Fix. Our foam product line has been expanded to supply a growing architectural application. In development is the customization of our solventless UV curable conformal coating range of products, lower cost versions of several established products and a project to reduce the operating temperature of our asphalt additive Rosphalt 50. Adam Chase will speak a bit more about these new opportunities as well as make some comments on current operating plans and activities. President and Chief Operating Office, Adam Chase then reviewed 2008 plus current challenges and opportunities. Peter, I want to thank you and the board for your continued support and take this opportunity to thank our shareholders, stakeholders and most importantly, our employees for their support and contributions to Chase Corporation. I especially want to recognize and thank my team of direct reports who work very hard every day to achieve solid results. I am very proud to work with such a talented team of people. Peter raised some critical issues for Chase Corporation as we continue into this fiscal year. I will quickly address fiscal 2008, which is now a distant memory given the global financial crisis and weakening economic conditions. FY 2008 During Fiscal 2008 we had solid results in core markets despite volatility in raw materials pricing and availability. Demand remained strong for many core product lines: Pipeline Electronic coatings Wire & Cable – In particular our Chase Blh₂ock™ strand fill compound traditionally used for water blocking in 35 KV URD cable gained wide acceptance in wind farm energy distribution applications. At last year’s meeting I discussed the challenges facing our company due to higher than normal pricing pressure on raw materials. During Fiscal 2008, we experienced an unprecedented increase in the price of oil, which resulted in extreme pricing and supply volatility for many key raw materials. We were able to successfully face these challenges, we maintained margins and more importantly we maintained continuity of supply to our customers. FY 2009 The first signs of the global financial crisis appeared at the very beginning of Fiscal 2009. Crude oil began to drop sharply and subsequently many basic commodities have begun to fall and customers are looking for price reductions. Our products are not basic commodities and not all inputs have decreased in price as quickly as crude oil. We are addressing each situation appropriately. We will continue making progress on our consolidation and restructuring efforts. These initiatives have become more strategically important given the current economic climate. This spring, we plan to install an improved Humiseal manufacturing control system at our Zeta Drive facility in Pittsburgh. Our re-investment in this core product line will help us to enhance our participation in Humiseal’s value chain. We also continue to invest in product and market development. Some examples are as follows: Paper Tyger Green – This is a Patent pending product enhancement of our traditional Paper Tyger product, but with an oxo-biodegradable inner strength member. Royfill Casing Filler – Our partnership with Mears Group is revitalizing sales of this 25 year old product. Further, we developed a complementary Casing End Seal utilizing several of Chase’s corrosion prevention product technologies. Pipeline Wax tapes – These are used for above ground corrosion prevention applications in the gas industry. This fills a gap in our product portfolio. Architectural foam – This is an extension of our expansion joint product line used primarily in roads and bridges. Pot Hole Fix – We are developing new commercial and retail applications for an existing product technology primarily used in roads and bridges as well. Products under development: Low Smoke/Low Temperature R50 – Enhancement to an existing product. Humiseal UV40 – Application specific formulations being developed. Despite the current state of the economy, we continue to move ahead with strategic initiatives that will benefit us in the long term. We are well positioned financially and are prepared for the challenges ahead. Thank you again for your support. Peter Chase concluded: The main leg of our growth engine has never been more active. We have multiple acquisition opportunities with the financial resources available to do the transactions. In the current climate we are looking more carefully and setting a higher standard. Nevertheless, we have several outstanding candidates. As you know we have grown over the years through a combination of organic growth and acquisition expansion. This is of course blended with our own style of careful fiscal management and control, continuous improvement in operations and global expansion. In conclusion, with our strong balance sheet, strategic position in key markets, new product and service offerings and our M&A opportunities we are positioned well to weather the recession while building new business from both internal developments and acquisitions. From all indications and predictions a recovery may not occur until well into year 2010. We will rely on our proven management style to both run a tight ship and take advantage of the internal and external strategic opportunities to build value. We have a great team, an established track record and a winning strategy for the tough time ahead.
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